Tax Planning/tax returns

QuestionHello Richard, I'm seeking your expert advice on a situation my mother has regarding some gambling winnings. She won about 84k this yr and they took 24k for taxes. She's a disabled women on ssi and is concern how the process will be like when it comes to filing taxes. She isn't sure if they will stop her benefits or if she will owe additional taxes. However, she lost it all back to the casino so financially she's back to fully depending on her benefits. Richard i ask what will be the outcome when it's time to file. Any advice is appreciated.

AnswerHi Elly,
I don't know how SSI works so can't help with that. You might call them and ask if that income will make a difference. If it works off her tax return she might luck out. On her taxes you can run her income thru something like TurboTax and see how it comes out. The IRS judges its opinions and taxes on the paperwork it receives. So the 1099 from the casino is important. And, if she kept her receipts or at least a log she should be able to deduct all or most of her losses up to the amount she won so the tax impact will be less. That would negate the winnings, at least on the return.
RS

Expertise

My expertise is in collecting past due taxes and tax returns. While at the IRS I worked on wage and bank levies, liens, Offer in Compromise, late filing and payment agreements every day. I spoke with over 20,000 people concerning their issues while I worked there (just retired).

Experience

Ten years working for the the IRS in Collections and tax return review. Worked with over 20,000 people on their IRS issues. Explained their options and usually worked out a solution while they were on the phone.